Abacus grows Ajax resource

Vancouver – A new resource estimate for the Ajax copper-gold project near Kamloops, British Columbia, says the deposit hosts 2.5 billion lbs. of copper and 2.3 million oz. gold.

Abacus Mining and Exploration (AME-V) has been slowly adding tonnes to the resources at Ajax since it started earning its ownership of the property in 2002. Now the junior can boast measured and indicated resources totalling 365 million tonnes grading 0.31% copper and 0.2 gram gold per tonne. Inferred resources add 38 million tonnes averaging 0.24% copper and 0.16 gram gold.

The Ajax deposit remains open along strike and at depth. In addition, in late 2008 Abacus drilled several holes into the Monte Carlo area, which is thought to be a northern extension of Ajax. Results from those holes are still pending.

The Ajax resource is split between the Ajax West and Ajax East areas; some 20% of the resource also sits in ground that is joint ventured with New Gold (NGD-T). Down to 500 metres depth, the joint venture land is held 60% by Abacus and 40% by New Gold.

The Ajax project is part of the Afton mining camp, where copper, gold, and silver production can be traced back some 100 years. The Afton mine produced some 31 million tons of ore grading 1% copper, 0.58 gram gold, and 4.2 grams silver per ton until production ceased in 1997.

In 2000, DRC Resources (which is now New Gold) began exploring beneath the old Afton mine open pit and was successful in proving the presence of higher-grade resources at depth. New Gold is now developing an underground operation to tap into those zones, which carry probable reserves of 1 million oz. gold, 3.24 million oz. silver, and 960 million lbs. copper.

In 2002 Abacus signed an option agreement with Teck to earn a 100% interest in a group of claims in the area of the old Afton mine, including the claims covering the old Ajax pit. The claims are adjacent to and surround New Gold’s properties. By 2004 Abacus had fulfilled its earn-in obligations and held the property outright.

In 2005 Abacus inked another deal with Teck, this time to buy the old Afton mill infrastructure, tailings pond, mill and shop buildings, and the related permits and surface rights.

Now the company now plans to complete a preliminary economic assessment contemplating a 60,000-tonne-per-day operation at Ajax. Abacus management believes that the new resource coupled with the existing infrastructure will allow the company to move quickly towards production.

News of the Ajax resource added just half a penny to Abacus’ share price, which closed the day at 9¢. The company has a 52-week trading range of 2.5¢ to 54¢ and has 121 million shares outstanding.